Martha, a U.S. citizen, owns 40% of the stock of George Corporation, an electing S corporation. At the time of her death this year, the George stock passes to her estate. The stock is subsequently transferred to a trust provided for in Martha's will. Can the testamentary trust hold the George stock for a two-year period before the S election is terminated?
What will be an ideal response?
The trust can hold the S corporation stock for an indefinite period of time only if the trust's income beneficiary makes an election to have it treated as a QSST or small business trust. Otherwise, the S election will be terminated at the end of the two-year period.
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Young teenage girls are very heavy users of makeup (especially eye shadow)
Though the size of this market is smaller than the larger adult market, marketers have learned that the consumption pattern is very heavy and these young women experiment with many varieties of products. This market most closely resembles which of the following principles? A) The 80/20 principle B) The pyramid principle C) The derived demand principle D) The surrogate buyer principle
From its inception through the year of 2017, First Mart, Inc. was profitable and made strong dividend payments each year. In the year 2018, First Mart had major losses and paid no dividends. In 2019, the company started making large profits again, and they were able to pay dividends to all shareholders—both common and preferred. There are 2000 shares of cumulative, 10% preferred stock outstanding. The preferred stock has a par value of $100. What is the total amount of dividends that should be paid to the preferred stockholders in December, 2019?
A) $60,000 B) $90 C) $20,000 D) $40,000
When a firm reacquires common shares under the Par Value Method for Repurchased Shares:
a. the Treasury Stock—Common account has a credit balance that reduces the amount of Marketable Securities reported on the balance sheet. b. the accountant debits the Treasury Stock—Common account for the par value of the repurchased shares, debits Additional Paid-In Capital for the difference between the original issue price of the shares and par value, and plugs Retained Earnings for any difference between the repurchase price. c. the accountant debits the Common Stock account for the par value of the repurchased shares, debits Additional Paid-In Capital for the difference between the original issue price of the shares and par value, and plugs Retained Earnings for any difference between the repurchase price. d. the Treasury Stock—Common account has a credit balance and therefore reduces total shareholders' equity. e. the accountant credits the Common Stock account for the par value of the repurchased shares, credits Additional Paid-In Capital for the difference between the original issue price of the shares and par value, and plugs Retained Earnings for any difference between the repurchase price.
Social media can support the goal of building a successful brand by allowing the firm to develop deeper relationships with customers and by generating positive ________ ________ ________ communication about the brand across social networks.
What will be an ideal response?